Specialty eggs are getting their day in the sun.
Consumers have not heard so much news about eggs since the '70s when they were derided as prime carriers of "life-threatening" cholesterol. Now, informed shoppers know they can enjoy eggs in moderation. When they look in the dairy case, they have a myriad of choices, beyond the standard carton of 12. Eggs enhanced with nutrients, such as omega-3 fatty acids, are widely available. Shoppers are also hearing a lot about the living conditions of hens, leading some to buy cage-free eggs.
It's not just consumer interest that's driving the trend. As the public becomes more concerned about health and animal welfare, commodity egg prices have dropped significantly. That has spurred producers to get on the bandwagon with eggs enhanced in a way that will meet consumers' needs -- and command a premium price.
"Egg farmers are looking to stay in business," one industry source said. "There's just an oversupply of eggs right now. When they're at 48 cents a dozen, you've got to find a way to make yours special so you can charge more."
Retailers, meantime, are devoting more case space to premium eggs, and it's paying off, they told SN.
"Those specialty- or premium-egg categories are increasing [in sales] every year," said Jim Roesener, director, dairy/frozen food, at 20-unit Clemens Markets, Kulpsville, Pa. "It's hard to say which [of the sub-categories] is doing best, but I believe organic is coming along a little stronger. They're all increasing and will probably continue. It'll depend a little on the economy, though, because there is quite a price spread."
Industry sources told SN they see retailers everywhere dedicating a lot of real estate to specialty eggs, and that probably accounts for some of the sales spurt right now.
One of the most common names in the retail egg case happens to be the biggest national brand of specialty eggs, Eggland's Best. It is best known for its omega-3 eggs, but it also produces organic and cage-free, said Charles Lanktree, president and chief executive officer of the Cedar Knolls, N.J.-based company. Lanktree credited his company for the growth of the entire category.
"Eggland's Best has had 104 consecutive months of double-digit growth, 19% per year," he said. "EB eggs are a better product, are marketed and advertised and the trade respects and promotes us. With respect to other 'specialty' eggs, by virtue of the shelf space they occupy, they will sell more. However, quite often they go on the shelves and die there. So, while they have grown in distribution, they can't always hold that distribution."
A number of regional brands of specialty eggs are popping up in dairy cases. Even private-label organic and cage-free eggs are appearing in supermarket coolers. That could reflect retailers' confidence in the category's future.
"We're dedicating two and a half, maybe three times as much space in the egg case to them as we were two years ago. In fact, Land 'O Lakes just hit us a couple of months ago with a whole spectrum -- omega-3, organics, low-cholesterol, cage-free, half-dozen packs. So we're making even more space, putting the Land 'O Lakes eggs all together. The labels are all the same color," Roesener said.
At the same time, sales of conventional eggs at the stores have not suffered as specialty eggs rise in popularity, he said. In fact, like other industry sources, Roesener said he believes the buzz over specialty eggs has brought beneficial attention to the whole egg category.
An official at Lund Food Holdings, parent company of Lunds and Byerly's stores in Minneapolis-St. Paul, agreed.
"Our conventional eggs may be leveling off, maybe down a little, but not significantly. In general, organic and omega-3 eggs are doing extremely well for us," said Bea James, director of natural, organic, and health and beauty care at the upscale chain of 20 stores.
"Consumers are better educated about [all] eggs," she said. "They know they are a good source of protein and that the cholesterol in them is similar to what's found in the human brain. I think the learning curve, though, is leaning toward the specialty category. We've increased space for all eggs probably 20% to 25% over the last two years to 8 to 12 feet depending on the store. Specialty takes up about 25% of that space."
James speculated the surging growth of other organic products and a consumer trend that shows reverence for artisan products have paved the way for the success of specialty eggs.
Cage-free eggs are also gaining favor. In the spring, Wild Oats Markets, a natural food supermarket chain with more than 100 stores, formally announced it would not source eggs from producers that cage their laying hens. Other natural food chains this year, including Whole Foods Market, Austin, Texas, Trader Joe's, South Pasadena, Calif., and EarthFare, Asheville, N.C., made similar public pledges about sourcing only cage-free eggs.
In the aftermath of the company's announcement, Wild Oats received accolades from the Humane Society.
"Actually, we've been sourcing cage-free-only for years. It's just that we didn't have a formal policy," said Sonja Tuitele, spokeswoman for Wild Oats, Boulder, Colo. "We've always felt that sourcing cage-free eggs is just part of our humane standards, and our customers appreciate that. Since we made the public announcement in May, our CEO has received hundreds of letters thanking us."
All eggs are selling well at Wild Oats, Tuitele said. "Sales of omega-3 and organic are particularly strong, but we promote all eggs as a super food," she said. "In all our new stores, the egg coolers are 25% to 30% bigger."
Some of the added space was created to accommodate specialty eggs, but it also reflects flush times for eggs in general, Tuitele pointed out.
"People are aware that eggs are good for them, and some are transitioning to specialty eggs," she said. "I think they figure if they're going to buy eggs they might as well get even more benefits like more omega-3, organic, and cage-free."
Indeed, the consolidation of multiple benefits in eggs is the big news this year, said Alan Andrews, director of marketing for egg packaging at Pactiv, a Lake Forest, Ill., packaging company. When consumers see many desirable nutrients packed in one egg, it makes it more convenient for them, and it also helps them justify the premium price, Andrews said.
"The category is getting larger. That's why percentage increases in sales are not as big as they were a year ago, but it continues to grow," he said of the category.
